Digital-Asset Product Flows Drop

Profit-taking is the likely reason for net outflows of $16 million last week.

JamesButterfill310x310
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Head of Research and Investment Strategy
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Reviewed by: etf.com Staff
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Edited by: Mark Nacinovich

Digital-asset investment products saw minor outflows of $16 million last week, ending a run of 11 straight weeks of inflows. Trading activity remained well above the year average, though, at $3.6 billion. 

The mixed regional flows suggest this was more related to profit-taking than to a turn in sentiment toward the asset class. 

Altcoins bucked the trend, with $21 million of inflows. The main beneficiaries were solana, cardano, XRP and chainlink.

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Bitcoin ETFs Suffered Highest Outflows

Digital-asset investment products saw minor outflows of $16 million, ending a streak of 11 straight weeks of inflows. Trading activity remained well above the year average, though, at $3.6 billion for the week, compared with the year-to-date average of $1.6 billion. 

Regionally, the outflows were primarily focused on the U.S., which had $18 million in outflows, while Germany saw minor outflows of $10 million. That was partially offset by continued inflows into Canada and Switzerland totaling $6.9 million and $9.1 million, respectively. The mixed regional flows suggest this was more related to profit-taking rather than a turn in sentiment toward the asset class. 

Bitcoin suffered the most, seeing $33 million of outflows last week, while short bitcoin saw minor outflows of $300,000. 

Altcoins bucked the trend, with $21 million of inflows. The main beneficiaries were solana, cardano, XRP and chainlink with inflows of $10.6 million, $3 million, $2.7 million and $2 million, respectively. 

Ethereum and avalanche had outflows of $4.4 million and $1 million, respectively. 

Blockchain equities continued to experience positive sentiment, seeing substantial inflows of $122 million last week, bringing the last nine-week run to $294 million.

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James Butterfill has over 19 years of experience in fund management, investment banking, economics and asset allocation, gained most recently as an investment strategist at CoinShares. Previously, he was head of research at ETF Securities, with prior experience as a multi-asset fund manager and investment strategist at Coutts & Co., HSBC & ING Barings. James is a regular media commentator, and frequently appears on Bloomberg TV, CNBC, BBC and other broadcast outlets. Investment Week awarded him best ETF Eesearch and best FX Research in 2016 and 2017, respectively. James is currently an investment strategist at CoinShares, writing research white papers on investment themes, identifying investment opportunities and helping investors understand the digital asset world.